The Shark Tank is an American reality TV showed that premiered in 2009. It’s now running on its 6th season and there’s a plan for at least one more season. The show focuses on the drama of young and innovative entrepreneurs who are put face to face with a board of investors. If the investors like the entrepreneur’s business plan and concept, they will finance it. If you’re an entrepreneur, there’s a lot that you can learn by simply watching the show.
1. You need a pragmatic concept and business plan
If you’ve never tried to get an investment for your business before, you might not already know this. Every investor wants to see a concept that is viable and worthwhile. Nobody is going to invest in a company that doesn’t have a solid business plan that takes as much as possible into consideration. Before setting out to your first meeting with a possible investor be sure to have accumulated enough experience with your current business plan.
2. You need realistic financial goals
Realism is expected from all entrepreneurs. Not because fantasy is bad for business, but because nobody wants to dish out loads of money on over-evaluated business propositions. I’m not saying that you shouldn’t be ambitions, I’m just saying that you need to think, re-think and re-think your financial goals and needs over and over before trying to find an investor. These guys have been doing this for a while. They know when you’re overshooting, so you should rather set smaller financial goals and grow from there, instead of overestimating and eventually not providing the value.
3. Always listen to the reasons why your plan has been rejected
Investors will almost always offer you reasons for why they’ve turned down your proposition. They do this because every potential business means profit for them. But they can’t invest in a business that doesn’t reach their standards. Always be patient and understanding, and realize that you’re not the only one who’s trying to get an investor’s attention. Use the advice they give you after they’ve turned you down and improve your plan.
4. Find investors who are passionate about your business
You have to do extensive research on your potential investors. Firstly because they will do too, and secondly because you want to reach out to investors that you know are interested in what you have to offer. Know that investors are more likely to invest in your business if they’re passionate about what you’re offering.
5. Think like a predator
This is probably the most pragmatic advice that any young entrepreneur should know and live by. Today’s business world is filled with predators. Eat or be eaten may sound too harsh, but that’s reality. Remember that you’re in a competition with everyone around you. Only if you strive to be the best in what you do, can you eventually achieve greatness.